Blacksteel Energy Inc. Announces FarmIn Option Agreement

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. WIRE SERVICES

Blacksteel Energy Inc. (TSX VENTURE:BEY) ("Blacksteel" or the "Corporation")
announces that it has signed an option agreement with an industry partner to
farm-in and participate in the drilling of conventional oil and liquids rich gas
opportunities in central Alberta.


The agreement provides the company with the opportunity to participate in
multiple medium depth low risk wells which will target oil in the Elkton
formation, liquid rich gas in the Mannville, as well as uphole potential in this
multi-zone area. 


Curtis Hartzler, President and Chief Executive Officer of the Corporation stated
"This project will give the Corporation opportunity to conservatively add value
and build an asset base but also gives us exposure to a very high yield project
with exceptional upside. Blacksteel continues to pursue growth opportunities for
both oil and liquids rich natural gas in the Western Canadian Sedimentary
basin".


Blacksteel is a junior oil and gas company involved in the exploration,
exploitation, development and production of petroleum and natural gas resources.
The Corporation has a 100% working interest (55% after payout) in a natural gas
producing property in the Grassland area of Alberta and a 23.3% working interest
(15.5% after payout) in a producing oil well in the Devon area of central
Alberta. 


The Corporation also holds a 100% working interest in a four section petroleum
and natural gas lease in the Del Bonita Area of Southern Alberta where recent
Bakken horizontal wells have been drilled on lands immediately offsetting its
acreage. Results of these wells has been maintained confidential by the
operators of the wells. Several 3D seismic programs have also recently been
conducted in the area, one of which covered a portion of two sections of the
Corporation's lands.


Forward-Looking Information Cautionary Statement: This document contains
forward-looking statements regarding the business and operations of Blacksteel.
All statements other than statements of historical fact contained herein are
forward-looking statements under applicable securities laws. In particular,
statements as to the Corporation's anticipated operational and drillings plans
and acquisition opportunities are forward-looking statements. These forward
looking-statements are based upon various assumptions as to future well
productions rates, well drainage areas, success rates, timing and costs of
future well drilling, the availability of capital and future costs and
availability of labour and services, all of which involve substantial known and
unknown risks, uncertainties and assumptions, certain of which are beyond the
Corporation's control. Such risk, uncertainties and assumptions include, without
limitation, oil and gas exploration, development, exploitation, production,
marketing, processing and transportation, loss of markets, volatility of
commodity prices, currency fluctuations, imprecision of reserve estimates,
environmental risks, competition from other producers, inability to retain
drilling rigs and other services, delays resulting from or inability to obtain
required regulatory approvals and ability to access sufficient capital from
internal and external sources, the impact of general economic conditions in
Canada, the United States and overseas, industry conditions, changes in laws and
regulations (including the adoption of new environmental laws and regulations)
and changes in how they are interpreted and enforced, increased competition, the
lack of availability of qualified personnel or management, fluctuations in
foreign exchange or interest rates, stock market volatility and market
valuations of companies with respect to announced transactions and the final
valuations thereof, and obtaining required approvals of regulatory authorities.
The Corporation's actual results, performance or achievements could differ
materially from those expressed in, or implied by, these forward-looking
statements and, accordingly, no assurances can be given that any of the plans,
intentions or expectations anticipated by the forward-looking statements will
transpire or occur, or if any of them do so, what benefit the Corporation will
derive there from. Readers are cautioned that the foregoing list of factors is
not exhaustive. Additional information on these and other factors that could
affect the Corporation's operations and financial results are included in
reports on file with the Canadian securities regulatory authorities and may be
accessed through the SEDAR website (www.sedar.com). 

All subsequent forward-looking statements, whether written or oral, attributable
to the Corporation or persons acting on its behalf are expressly qualified in
their entirety by these cautionary statements. Furthermore, the forward-looking
statements contained in this news release are made as at the date of this news
release and the Corporation does not undertake any obligation to update publicly
or to revise any of the included forward-looking statements, whether as a result
of new information, future events or otherwise, except as may be required by
applicable securities laws.


Not for distribution to U.S. Newswire Services or for dissemination in the
United States of America. Any failure to comply with this restriction may
constitute a violation of U.S. Securities Laws.